Product Life Cycle of NOKIA Mobile Brand in India By Mayur S. Patil

"PRODUCT LIFE CYCLE OF NOKIA MOBILE BRAND IN INDIA”

“MR. MAYUR SHESHRAO PATIL”

SUBMITTED TO

“UNIVERSITY OF MUMBAI”
"YEAR 2013-15"

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EXECUTIVE SUMMARY

My project report on Product life cycle of Nokia Mobile was a great study for me. After going through this study I learn many things regarding Product life cycle stages. Strategies, Nokia’s failure reasons, market competition, market share of Nokia Mobile as well as their OS Market share etc in India as well as in the world.

This project is about the “Product Life Cycle of Nokia Mobile Brand INDIA” The study of Product life cycle help to know actual position of Nokia Mobile in India as well as in the world. After studying this I could able to learn the reason behind failure of Nokia Mobile, their product life cycle, India has huge. India is a number three rank in Mobile user. The purpose of this project is to study the main reason of Nokia failure and the actual status of Nokia mobile in present scenario.

1. INTRODUCTION

Everyone knows the Product Life Cycle (PLC) concept doesn’t really work – don’t They? The academic literature seems to have all but buried the PLC concept. Indeed, the

Amount of attention bestowed upon the PLC in the academic literature over the years is probably due more to the inadequacies of the concept than to its utility. Despite this, most

Marketing textbooks still give it considerable attention. Though controversial, the PLC is

Undoubtedly still one of the better-known concepts in marketing.

To investigate this paradox, we present a selected history of the PLC concept. The Origins of the PLC in marketing literature can, in fact, be traced back to a debate about the usefulness of the PLC concept. Representative of this debate are the pro-PLC article

(Anderson & Zenithal, 1984) and the widely cited Forget the PLC Concept article (Dhalla & Yuspeh, 1976).

In the fall of 1981, when the Journal of Marketing devoted a special issue to the topic; the need for further research into a revised PLC framework was identified. However, few have since taken up this challenge, with the last significant work extending the PLC concept appearing in 1989, by Lambkin and Day.

A key problem with the PLC concept is that it is based on an intuitively appealing and simple, but unfortunately inadequate, biological analogy of a product’s “life.” The four “Stages” of the traditional PLC concept (introduction, growth, maturity, and decline) are defined by changes in the sales growth rate, which is assumed to adopt an “S” shape.

Unfortunately, ample empirical evidence suggests that this “S” shape is often not an appropriate approximation of the PLC sales pattern, in which case the “stages” cannot be unambiguously defined. Further, even when the PLC sales pattern does usefully approximate an “S” shape, the PLC concept offers no guidance as to the timing of the transition between stages (Gardner, 1987; Rink & Swan, 1979). As such, the utility of the PLC concept as a planning tool for marketing managers is obviously questionable.

Another important deficiency of the PLC concept is the limited amount of information provided to guide marketing strategy (Wind & Claycamp, 1976, p.8). Essentially, strategy guidelines are based on the current and expected sales growth, together with the expected competitive intensity However, apart from sales growth, consumers are ignored. While such a general strategic tool like a PLC concept can hardly be expected to include all elements relevant to marketing strategy formulation, such a disregard of consumers seems incredulous for such a prominent marketing tool.

2. COMPANY PROFILE

Nokia is a leader in the fields of network infrastructure, location-based technologies and advanced technologies. Headquartered in Espoo, Finland, and with operations around the world, Nokia invests in the technologies of the future.

Today, we have three strong businesses: Nokia Networks, our network infrastructure business; HERE, our location intelligence business; and Nokia Technologies, which is focused on technology development and intellectual property rights activities. Through these businesses, we have a global presence, employing around 57,000 people. We are also a major investor in R&D, with investment through the three businesses amounting to more than EUR 2.5 billion in 2013.

Until recently, Nokia also was a key participant in the mobile devices market through its Devices & Services business. In September 2013, Nokia announced an agreement with Microsoft whereby it would sell substantially all of its Devices & Services business to Microsoft. The transaction was completed on April 25, 2014.

History

Nokia has a long history of successful change and innovation, adapting to shifts in markets and technologies. From its humble beginning with one paper mill, the company has participated in many sectors over time: cables, paper products, tires, rubber boots, consumer and industrial electronics, plastics, chemicals, telecommunications infrastructure and more. Most recently, Nokia has been best known for its revolutionary wireless communication technologies, which have connected billions of people through networks and mobile phones.

Nokia’s history dates back to 1865, when mining engineer Fredrik Idestam set up his first wood pulp mill at the Tammerkoski Rapids in Southwestern Finland. A few years later he opened a second mill on the banks of the Nokianvirta River, inspiring him to name his company Nokia Ab in 1871.

In 1967, we took our current form as Nokia Corporation as a result of the merger of Idestam’s Nokia AB, Finnish Rubber Works, a manufacturer of rubber boots, tires and other rubber products founded in 1898, and Finnish Cable Works Ltd, a manufacturer of telephone and power cables founded in 1912. The new Nokia Corporation had five businesses: rubber, cable, forestry, electronics and power generation.

Nokia first entered the telecommunications equipment market in 1960 when an electronics department was established at Finnish Cable Works to concentrate on the production of radio-transmission equipment. Regulatory and technological reforms have played a role in our success. Deregulation of the European telecommunications industries since the late 1980s has stimulated competition and boosted customer demand.

In 1982, we introduced the first fully-digital local telephone exchange in Europe, and, in the same year, the world’s first car phone for the Nordic Mobile Telephone analog standard. The technological breakthrough of GSM, which made more efficient use of frequencies and had greater capacity in addition to high-quality sound, was followed by the European resolution in 1987 to adopt GSM as the European digital standard by July 1, 1991. The first GSM call was made with a Nokia phone over the Nokia-built network of a Finnish operator called Radiolinja in 1991, and in the same year Nokia won contracts to supply GSM networks in other European countries.

In the early 1990s, we made a strategic decision to make telecommunications our core business, with the goal of establishing leadership in every major global market. Basic industry and non-telecommunications operations—including paper, personal computer, and rubber, footwear, chemicals, power plant, cable, aluminum and television businesses—were divested between 1989 and 1996. By 1998, Nokia was the world leader in mobile phones, a position it enjoyed for more than a decade.

In 2006, Nokia, which had already been investing in its mapping capabilities for many years, acquired Gate5, a mapping software specialist, and then in 2008 NAVTEQ, the US-based maker of digital mapping and navigational software. Today, Nokia offers leading location services through the HERE business and brand, launched in 2012.

In 2007, Nokia combined its telecoms infrastructure operations with those of Siemens to form a joint venture named Nokia Siemens Networks. NSN has become a leading global provider of telecommunications infrastructure, with a focus on offering innovative mobile broadband technology and services.

In 2011, Nokia joined forces with Microsoft to strengthen its position in the highly competitive Smartphone market. Nokia adopted the Windows Phone operating system for smart devices and through their strategic partnership Nokia and Microsoft set about establishing an alternative ecosystem to rival iOS and Android. In 2011, Nokia also started to make a number of changes to its operations and company culture that would in the course of the next two years lead to shortened product development times, improved product quality and better responsiveness to market demand.

In 2013, Nokia moved to reinvent itself with two transformative transactions. The first was the purchase of Siemens’ stake in NSN, which was nearing the end of a deep restructuring and remarkable transformation. The second was the announcement of the sale of substantially all of Nokia’s Devices & Services business to Microsoft. The Microsoft transaction was originally announced on September 3, 2013 and was completed on April 25, 2014.

Following the closing of the transaction, Nokia announced its new vision and strategy, building on its three strong businesses; Nokia Networks, HERE, and Nokia Technologies.

Company’s values

The Nokia values are designed to guide our decisions, our way of working and the responsibility we have towards our customers and other stakeholders. We strive to bring these values to life in how we think, act, behave and communicate in our industry.

Respect

We treat each other with respect and we work hard to earn it from others.

Achievement

We work together to deliver superior results and win in the marketplace.

Renewal

We invest to develop our skills and grow our business.

Challenge

We are never complacent and perpetually question the status quo.

Mission:

v A world where everyone can be connected.

v In 2015, 5 billion people always connected, and 100 fold more network traffic.

v It’s a world of experiences, shared experiences.

v Grow the number of people using Nokia devices

The Vision:

What would the company like to achieve?

A good vision is meant to stretch a company by articulating an ambitious but attainable future state.

Nokia is the world’s largest manufacturer of mobile phones and operates with a simple but powerful vision: “If it can go mobile, it will!”

Structure optimized for growth and innovation

Nokia has a simple and clear operational governance model, designed to facilitate innovation and growth.

Nokia Code of Conduct

” As a young entrepreneur one of my core principles was: ‘We want to be proud not only of what we achieve but also of the way we achieve it’. That fits perfectly with Nokia as well, and the Code of Conduct is our guideline to being proud of the way we do business." - Risto Siilasmaa, Nokia Chairman

At Nokia, we value the opinions of others and know that stakeholder and shareholder trust is core to our competitiveness and success. We take professional pride in the work we do as well as how we achieve it. We cherish the Nokia brand and reputation we have managed to build over the years. That’s why we strive for the highest degree of ethical conduct in every action we take. We are committed to running our business in line with internationally recognized ethical and responsible business
\practices.

Responsible business behavior is one of the cornerstones of Nokia’s culture of performance and integrity. In a company of our size and global scope, the Code of Conduct helps our people to make the right decisions in everyday work.

Nokia is devoted to maintaining a culture in which employees feel comfortable raising concerns and potential violations of the Code of Conduct. We prohibit retaliation against any employee at Nokia who reports in good faith or who participates in an investigation of a possible violation of the Code of Conduct.

Nokia requires all employees to familiarize themselves with and follow Nokia’s Code of Conduct in their work. Our program to make it a part of daily business includes training, materials, team discussions and a mobile app.

People & Planet

“We are committed to respecting people and our planet in everything we do,
as well as innovating ways to connect the world for a better tomorrow.”
-Rajeev Suri, Nokia's President & CEO

We love what we do, so when we do something we do it well. Our technology needs to be the very best, but that’s not enough. While we connect the world we’re committed to respecting people and our planet in everything we do too. And, by doing things together we can have a much wider effect.

NOKIA’S guiding principles are:

Valuing people in everything we do

We continue to stand by the core of our Finnish culture; being truthful, honest and transparent. We have long fostered diversity, equality and respect for human rights and dignity. We do not tolerate corruption of any kind, whether internal to Nokia or in our business relationships. Study our Code of Conduct which describes our expectations for the ethical conduct of Nokia’s business.

Being green and clean

We strive to make environmental issues everyone’s responsibility at Nokia – they are a part of everything we do.

Unleashing the potential of technology for good

We are committed to innovating ways to use technology for a more sustainable tomorrow.

Making change happen together

We believe collaboration with others can often be the most effective way to approach certain sustainability issues. That’s why we work with international organizations driving sustainable development and participate in public policy development initiatives across the world.

Information about how we seize opportunities to grow a sustainable business and meet our obligations to people and the planet at Nokia Networks is available.

3. OBJECTIVES OF STUDY

1. To study the concept of Product Life Cycle in detail

2. To study the introduction stage of Nokia

3. To study the why Nokia product failed in the competitive market

4. To find out reasons behind growth and decline stage of Nokia in present scenario

5. To study the current status of Nokia brand in the market

4. RESEARCH METHODOLOGY

Source of Data:

Ø Secondary Data :

Sources form where secondary data had been collected is,

v Web Site of the Company.

v Related Books

v Other Web sites.

Scope & Limitation:-

Ø The problem of every industry irrespective of its location as similar in nature so the solution given at the end of the study to common problems may be applicable even in other part of country.

Ø The scope of the study is wide as it will help to understand in details the market position of Nokia brand and its product life cycle.

LIMITATIONS:

Ø Time available for research was very short.

5. THEORETICAL BACKGROUND

Product Life Cycle

Definition-

“The stages through which the individual products develop over a period of time are known is product life cycle.”

The product life concept is derived from the fact that a given product’s volume and revenue follow a typical pattern of four phase’s cycle. This life cycle is the representative facts of the existence of every product.

If we plot a growth of sales volume versus time for a product, generally, the PLC represents a bell shaped or S-shaped curve.

Stages of product life cycle

Introduction Stage

This stage involves introducing a new and previously unknown product to buyers. Sales are small, the production process is new, and cost reductions through economies of size or the experience curve have not been realized. The promotion plan is geared to acquainting buyers with the product. The pricing plan is focused on first-time buyers and enticing them to try the product.

Growth Stage

In this stage, sales grow rapidly. Buyers have become acquainted with the product and are willing to buy it. So, new buyers enter the market and previous buyers come back as repeat buyers. Production may need to be ramped up quickly and may require a large infusion of capital and expertise into the business.

Cost reductions occur as the business moves down the experience curve and economies of size are realized. Profit margins are often large. Competitors may enter the market but little rivalry exists because the market is growing rapidly. Promotion and pricing strategies are revised to take advantage of the growing industry.

Mature Stage

In this stage the market becomes saturated. Production has caught up with demand and demand growth slows precipitously. There are few first-time buyers.

Most buyers are repeat buyers. Competition becomes intense, leading to aggressive promotional and pricing programs to capture market share from competitors or just to maintain market share. Although experience curves and size economies are achieved, intense pricing programs often lead to smaller profit margins. Although companies try to differentiate their products, the products actually become more standardized.

Decline Stage

In this stage buyers move on to other products and sales drop. Intense rivalry exists among competitors. Profits dry up because of narrow profit margins and declining sales. Some businesses leave the industry. The remaining businesses try to revive interest in the product. If they are successful, sales may begin to grow. If not, sales will stabilize or continue to decline.

PRODUCT LIFE CYCLE:

Ø Successful new products may not last forever, during its life. Sales /profits generated for By-product may vary.

Ø Variance depends on the market demand for product changing needs level is described by demand cycle curve such as:

Ø Demand may also decline due to a change in technology.

Ø Based on demand for a product it may be possible to create a concept that provides insights of the product’s competitive dynamics. This is called PRODUCT LIFE CYCLE.

Ø Products have a limited life.

Ø Product sales pass through distinct stages with each stage posing Challenges/Opportunities/ Problems.

Ø Profits rise/fall during different stages of product life cycle.

Ø Products require different marketing/manufacturing./ finance/ purchase/HR strategies at each stage of Product Life Cycle.

Product Life Cycle curve is typically divided into 4 stages:

¨ Introduction:

Ø Product introduced in market.

Ø Slow sales growth.

Ø No profits as expenses are high.

¨ Growth:

Ø Period of rapid market acceptance.

Ø Profit increases.

¨ Maturity:

Ø Sales growth slows down.

Ø Profits stability then decline to fight competition.

¨ Decline:

Ø Sales decreases

Ø Profits decreases

Ø Stages are marked by changes in rates of sales growth.

PLC concept can be used to analyze-

Product category (liquid/oral care/ skin care)

Product form (white liquid/paste/cake).

Products (vodka/ toothpaste/ soap)

Brands (Smirnoff/ Colgate herbal/ Lux)

Product categories have largest PLC’s. Many product category stay in maturity stage of

PLC indefinitely

Product forms follow PLC structure, i.e., better than product category as they pass through I/G/M/D strategies faster.

Products follow std. PLC or PLC variances.

Brands have shorter PLC’s however their PLC’s may be structured by investing brand with suitable products & image.

PLC Variants:

It exist many PLC patterns in addition to standard PLC. Some common variants

Are Sales Sales Sales Time Time Time

Product Life Cycle

(1) Growth/Slump/Maturity Pattern:

Ø Sales grow, and then fall to petrified level.

Example: Small kitchen appliances (Spoons), Cease fire.

(2) Cycle-Recycle Pattern:

Ø Sales grow, then decreases.

Company gives another promotion push for another smaller growth.

Example: Pharmaceuticals.

(3) Scalloped Pattern:

Ø Sales pass through a series of PLC’s due to discovery of new uses/characteristics.

Example: Nylon.

Style / Fashion / Fad Life Cycle:

Three special categories of PLC need to be distinguished.

PLC’s pertaining to Style/Fashion/Fad.

Style:

Ø Style is a basic/distinctive mode of expression appearing in a field of human endeavors.

Ø Once a style is invented, it can last for generations, at times going in/ going out.

Example: Styles in Home, Clothes.

Fashion:

Ø Fashion is a currently accepted/popular style in a given field.

Example: Clothes: Jeans.

Music: Hindi-Pop.

Fashion Pass through four Stages:

Ø Distinctiveness Stage:

Same customer take interest in something new that sets them apart.

Ø Emulation Stage:

Other customers take an interest out of desire to emulate fashion leaders.

Ø Mass-Fashion Stage:

Fashion becomes very popular & manufacturing gear up for mass production.

Ø Decline:

Consumer starts moving towards other fashion.

Ø Fad:

Fads are fashion that comes quickly into the public eye, are adopted with great zeal, peak easily and decline fast.

Acceptance cycle is short.

Fads tend to have limited followings

Example: Body Piercing, Tattooing, Pepsi Blue.

Benefits of the Product life cycle Model – Managers are always in need of predictive tools to help them navigate a seemingly chaotic market, and the Product life cycle model gives managers the ability to forecast product directions on a macro level, and plan for timely execution of relevant competitive moves. Coupled with actual sales data, the Product life cycle model can also be used as an explanatory tool in facilitating an understanding of past and future sales progression.

The Product life cycle model aids in making sense of past events as part of any extrapolator and interpretive approach to building strategy. Once a product strategy or product line strategy has been formulated, the Product life cycle model can be used as part of an ongoing strategy validation process since it reflects on market trends, customer issues and technological advancement. Companies always anticipate the emergence of new competitors and therefore, must prepare in advance to battle the competition and strengthen their product’s position.

The Product life cycle model is advantages in planning long-term offensive marketing strategies, particularly when markets and economies are stable. Nevertheless, most products die and once products are dead they hold no substantial revenue potential and are a toll on a company’s resources. By combining the elements of time, sales volume and notion of evolutionary stages, the Product life cycle model helps determine when reasonable to eliminate dead products

Limitations Of The Product life cycle Model – It is difficult to foresee transitions in Product life cycle stages since the key indicator are sales, which are always calculated with some lag. Therefore, the realization a stage transition has occurred is nearly always in retrospect. In addition, fluctuations in sales will produce erroneous conclusions, so slowing sales do not necessary mean the product has reached the Decline phase and the resulting conclusion to retire the product and divert resources is wrong.

Products, companies and markets are different, so not all products or services go through every stage of the Product life cycle. There have been many cases where products have gone straight from introduction to decline, usually because of bad marketing, misconceived features, lack of value to the consumer or simply a lack of need for such a product.

However, even if products would go through every stage of the Product life cycle, not all products/services spend the same length of time at each stage. This adds another level of complexity in determining which Product life cycle stage the product is in and consequently, which strategy to apply.

Finally, the Product life cycle model is inefficient when dealing with Brands or Services. Brands are not products but do have a life cycle of their own, and products belonging to a certain brand will experience a very different life cycle than the brand itself. For example, Dell and Mercedes-Benz are very strong brands whose life cycle is marginally affected by the failure of any of the products, which they hold. Apple Computer’s Lisa, Newton (market failures) and iMac (market success) are proof that brands and products have different Product life cycles although they are closely related

Marketing Strategies in the PLC
	Introduction	Growth	Maturity	Decline
Marketing Objectives	Create product awareness & trials	Gain market share, create strong positions	Defend market share, create profits	Reduce expenses milk brands
Product strategy	Offer basic Products E.g. Vodafone	Offer product extensions, build service differentiation	Diversify brands, items & models E.g. Blackberry	Phase out weak products
Price	Charge cost Plus	Penetration price promotions, deals Eg. Dominos in India	Match pricing to strong competitors	Cut prices
Advertising & Communications	Chosen market segments are addressed	Segment awareness	Advertise differentiation	Reduce levels to retain loyalists
Place	Build Selective Distribution E.g. Hushpuppies	Build intensive distribution	Build more intensive distribution	Go Selective: Phase out unprofitable outlets

NOKIA LUMIA VARIOUS SERIES-

NOKIA’S VARIOUS OS

Nokia’s Journey towards Failure

Year
2006	· Nokia is on a high. It enjoys 60% share of India’s mobile market and is the undisputed lead.
2007	June 29 · Apple launches iPhone 3s · Redefines smart phone and challenges category leaders like BlackBerry and Nokia.
2008	March · Micromax sets up handset business in India.
2008	September · Samsung launches Omnia. Becomes dominant in touch screen phones globally.
2009	June · Android enters in Indian market with HTC Magic at Rs 29,990.
2010	June · Samsung launched Galaxy S in India at Rs 31,500, its first Smartphone. · Later, Galaxy-3 (Rs 12,300) & Galaxy-5 (Rs 10,000). · Samsung’s Smartphone sales surge.
2010	August 30 · Nokia launches C1 & C2 – dual SIM phones. · Nokia market share in India for 2010 (Jan-Sept), according to IDC, crashes to 32.9%
2011	February · Nokia announces Microsoft partnership, but it takes 8-9 months to unveil products. · Meanwhile, Samsung consolidates position while Micromax, Karbonn, Lava, Spice launch cheaper Smartphone’s.
	March · iPhone 4. The iPhone changed the industry in more ways than one: apps, superlative design and accessories. · But Nokia is still struggling to find traction with Windows.
	June · Nokia launches dual-SIM phones, becomes no.1 player in this space, but it is 18 months late. This delay cost Nokia.
	November Samsung’s Galaxy Note, iPhone 4S launched
	December · Nokia Lumia 800 (Rs 29,000) · Lumia 710 (Rs 19,000) launched.
	Samsung’s cheapest Galaxy at 7,830; strengthens position in the low-end Smartphone space.
2012	January Nokia fights back. Launches first Asha 200 for Rs 4,400. It is its first QWERTY dual-SIM device. Strong product, but dual-SIM market is past its peak.
	June Full-Touch Asha 305 launched. Nokia claims its largest-selling Smartphone; but rivals and some tracking agencies don’t consider Asha a Smartphone.
	September Nokia market share is 22.2% and 19.2% in Smartphone’s.
	November iPhone 5 launched. December Samsung’s India Galaxy sales count crosses 1 Crore.
2013-till Now	Nokia’s market share dwindles down to 7-9% ass per IDC Asia Pacific Mobile Tracker in Q4 2012.
2013-till Now	March Lumia 520 (Rs 10,000) launched but Samsung, Micromax, karboon etc move ahead.

MICROSOFT NOKIA DEAL

Ø Microsoft buys Nokia phones, patent for $7.2B

Ø Proposed price consists of $5 billion for the Nokia unit that makes mobile phones.

Ø Another $2.2billion will be paid for a 10-year license to use Nokia’s patents, with the option to extend it indefinitely.

Ø Microsoft hopes to complete the deal early next year.

Ø About 32,000 Nokia employees will transfer to Microsoft, which currently has about 99,000 workers.

Reasons for Selling Its Assets

Net Operating loss

Losing Market Share

Why Nokia Failed?

· One of the giants in mobile manufacturers sold itself to Microsoft. Is it a sign of failure or its inability to maintain a firm? No doubt it’s a failure to properly manage.

· So, why do you think Nokia failed? Be attentive to know the reasons behind failure of Nokia’s marketing strategy and what can be learnt from it.

How Nokia failed in connecting ‘to’ people

· Apple redefined smart phones with touch screen and Blackberry with email. Android proved that software matters more than hardware.

· Nokia was slow to respond to these trends.

· In India, local brands stole the lead on the dual SIMs, low-end QWERTY and Long-battery-life phones.

· In a nutshell, that’s how Nokia, which enjoyed a 60% market share in India, ended 7-9% as per IDC Asia Pacific Mobile Tracker in Q4 2012.

Android weakened roots of Nokia?

· In 2008, brands like Samsung, HTC, and Sony found roots to extend their market.

· Samsung’s Android phones are user friendly and budget friendly too.

· When every manufacturer is busy in making touch screen mobiles, Nokia felt that touch wouldn’t have a scope in the near future but customers overwrote their expectations.

· Nokia’s entrance into Windows platform is quite late.

· Finally Nokia gave up for a 7.1 billion to Microsoft.

Mistakes that lead to Nokia Failure

1. Failure of Symbian OS:

· Nokia launched its Symbian 60 series in year 2002 which initially had a good market response

· The introduction of Apple iOS in 2007 and Android in 2008, the OS race was completely taken over by the two giants.

· The reasons for collapse of Symbian OS are lack of applications and UI (User Interface).

· After facing competition from iOS and Android, Nokia continuously tried to improve their Symbian OS but was not creating something unique.

2. Wrong Deal with Windows:

· The company made the biggest mistake to take a leap of faith in Windows in 2011. At that point of time, the company already was new in the field to regain its status was the biggest mistake the company made.

· All these phones which the company launched were comparable to other competitor devices but OS was the problem which leads to ultimate collapse of company.

3. NOKIA Became Laggard in Smartphone Market:

· Stiff competition from Samsung and Apple.

· Lack on focus on innovation was the second big reason of collapse.

· Nokia seemed to be lagging in the race. Where Samsung from nowhere entered the race and focused on innovation as its core competence to gain the market share, Nokia was very late to realize this fact.

4. Losing Market Share on Both Ends:

· Nokia not only failed to realize competition from Apple, Samsung, Sony, Blackberry in high end smart phones, they also failed to notice the stiff competition in the lower segments of phones.

· The company which used to have epic models like Nokia 1100 suddenly started losing at lower ends too.

· Very lately company realized this thing and launched their Asha series but by that time had already lost the game.

5. Failure to Implement the Right Umbrella Branding Strategy:

· Apple was the first phone to use the strategy of umbrella branding using iPhone as an umbrella brand and then building subsequent models each year.

· Samsung was quick in identifying this concept and they started building their high end phones with Galaxy S series.

· Nokia on the other hand used to have used an umbrella brand in the N series and recently the Lumia series, but they failed to create buzz among customer which Apple created.

· The company which is missing the constant innovation has the high probability of getting punished from the customer.

SWOT Analysis:

Strength	Weakness
Experience	Low voice quality
Largest network of selling & distribution	Less stylish in low priced products
Strong customer relation	Heavy sets
Wide range of products for all class	Unlike iPhone Apple, Nokia N-series is complex, tough and not user friendly

Opportunities	Threats
New growth markets	China mobiles – It has made exact
Concentrate on Smartphone’s	Competitors like Samsung & Apple
Well designed and styled set	Sales may decline due to global economic downturn
Mini notebooks	Standard & Poor downgraded Nokia with low grade

Nokia’s Wrong decisions:

Ø While the entire Smartphone OS industry was evolving, manufacturers moved on and adopted various operating systems like Android, Windows, Bada, Meego, etcetera, Nokia decided to stick to Windows OS only.

Ø As Android and iOS became more popular, Nokia and its windows phones failed to attract any attention.

Ø Though the new technologies developed by Nokia were ground breaking, they were not promising enough.

6. DATA ANALYSIS

Chart-1

Top-3 Smartphone Operating System Market Share and Ranking Forecast (Share of Shipments in India)

2015 Rank	Operating System	2013	2014	2015
1	Android	55.9%	57.8%	58.1%
2	Windows Phone	15.3%	16.1%	16.7%
3	Ios	17.3%	16.8%	16.6%
4	Others	11.5%	9.3%	8.6%
	Total	100.0%	100.0%	100.0%

Interpretation-

Above data shows that Smartphone’s Operating System Market Share and Ranking Forecast for last three years. It indicates that android OS is very popular and most successful as compare to other all OS IN INDIA it is number one rank. Secondly WINDOW’S OS (NOKIA OS) and thirdly IOS, among all android percentage is 58.1%, Window’s percentage is 16.7% and IOS percentage is 16.6% and others 8.6%.

Chart-2

Interpretation-

Above data indicates that the Mobile company’s Global Market share with its Competitor by 2015, if we compare Smartphone competition Samsung is no one by 30.6% market share, Apple is 24.1% and Nokia is 8.2% which indicates that Nokia’s Market share is getting down. Samsung is on hike position as compare to Apple and Nokia.

If we compare Mobile Handsets market share Nokia is on second position and Samsung is on first and apple third.

If we compare Number of Smartphones shipped, Samsung is in first position by 2015 Apple is on second position, and Nokia is on third position it shows that Nokia’s market share is downfall.

Chart 3

Interpretation-

From the above data we understood that Mobile phone vendors share in India by 2014-15 it indicates that Samsung is number one vendor in India by 17% of market share, Micromax is second rank by 15% of market share, Nokia is by 10% of market share, and Lava and Intex are on fourth rank by 8% of market share and others 43%. In the above analysis it indicate that Nokia’s market share is declining as compare to other smart phone

Chart-4

Interpretation-

Above Graphs shows the product life cycle comparison of Nokia and Samsung from 1995 to onwards. In this we understood that Nokia was earlier very successful in market as compare to Samsung. Till 2010 Nokia was at top level and after 2010 it started declining due to Samsung’s competition and their advance technology and Android OS. Till today there are Market leader and Nokia is on declining stage.

Chart 5

Interpretation -

Above graphs indicates that only Nokia’s PLC from 1995 to till the date today 2015, it shows that Nokia’s Growth stage was started from Nokia E-series, Nokia’s N series was at growth and Maturity stage Symbian OS was there. After then Nokia brand started declining after 2011 when huge completion was there and also Microsoft took over to Nokia in 2013. At present Nokia’s Mobile market is at very low growth stage.

Chart 6

Interpretation-

Above data shows the Nokia Lamia’s devices in the world, from the given data it indicates that Nokia Lumia 520 has huge scope in worldwide that 27% and Nokia’s other devices 23%. It means among all devices Nokia’s Lumia 520 is most successful product in the world.

Char 7

Interpretation-

In the above data we understood that in US Market Nokia Lumia 521 has huge scope among all other devices that is by 23%. Other it has 17%, Nokia Lumia 822 has 13% market in US. There is 10% demand for HTC 8X mobile. Nokia Lumia 520 has 7% demands over there in US market.

Chart 8

Assuming 52 million active Windows Phone devices
Device	Number active (m)
Nokia Lumia 520	17.16
Nokia Lumia 920	3.85
Nokia Lumia 620	3.64
Nokia Lumia 720	2.91
Nokia Lumia 625	2.76
Nokia Lumia 710	2.70
Nokia Lumia 820	2.29
Nokia Lumia 800	2.08
Nokia Lumia 521	1.87
Nokia Lumia 610	1.56
Other	11.18

Interpretation-

Above data shows the Nokia Lumia’s series Active Windows Phone devices based on AdDuplex Global data February 2014 it indicates that Nokia Lumia has 520 highest largest markets in the world Nokia Lumia 520 has sold near about 17.16 million. It shows that among all Nokia Lumia devices Nokia 520 is very successful devices

7. FINDING AND SUGGESTIONS

Findings-

Ø It was found that Nokia was a brand till 2011-12 but as soon as it was acquired by Microsoft, Nokia brand started declining due to the window’s OS.

Ø It was found that nowadays Nokia is on declining stage its market share is down falling.

Ø It was found that Nokia’s main competitors are Samsung, Microsoft, Karboon, and apple.

Ø It was found that Nokia couldn’t adopt with changing market demand that’s why they became failure in current market.

Ø It was found that Nokia consider only their brand image in the market they unable understand the market requirement in present scenario.

Ø It was found that there was negative impact of NOKIA - MICROSOFT deal that Nokia couldn’t become successful in the market even after the big deal.

Ø It was found that Apple redefined smart phones with touch screen and Blackberry with email. Android proved that software matters more than hardware.

Ø Nokia was slow to respond to these trends.

Ø In India, local brands stole the lead on the dual Sim's, low-end QWERTY and Long-battery-life phones.

Suggestion-

Ø As per the present scenario in the market Nokia must update their OS to android because android has largest market share otherwise they should make their existing OS very simple.

Ø Nokia must make effective product design they should compete with other competitor

Ø They should offer more competitive service to customer

Ø Nokia should change with the change they shouldn’t depend on their brand image

8. CONCLUSION

From the technology perspective, Nokia did not deliver as per expectations based on previous performance. From the strategy perspective, through Nokia did eventually come up with nice lucrative products, it lost in the race against time due to poor strategies and sly competition. There was negative impact of Nokia-Microsoft deal as per the expectation. Nokia must adopt new OS to survive in the market or they should make new changes in their existing OS.

9. BIBLIOGRAPHY

· www.wikipedia.com

· http://www.nokia.com

· http://www.newsmax.com/SciTech/nokia:smartphone:cell:phone/2014/09/07/id/451102

· http://thenextweb.com/eu/2012/poor:nokia:isnt:even:the:most:valuable:company:in:finland:anymore

· http://www.nokia.com/global/products

· www.economicstimes.com

· www.businesstimes.com

· www.businessdictionary.com/definition/product_life_cycle

· www.businessdictionary.com/definition/product_life_cycle/stages

----------------------THANK YOU----------------------

MAYUR SHESHRAO PATIL